Classification of Oil and Gas Operating Costs

1 - Conventional operating costs

Conventional extraction includes establishments primarily engaged in the production of petroleum or natural gas from wells in which the hydrocarbons will initially flow or can be produced using normal pumping techniques.

2 - Non-conventional operating costs

Non-conventional oil extraction includes establishments primarily engaged in producing crude oil from surface shales, oil sands or from reservoirs in which the hydrocarbons are semisolids and conventional production methods are not possible.